The Oil and Gas Regulatory Authority (OGRA) will hold a public hearing in Lahore today on Sui Northern Gas Pipeline Limited’s request to increase gas prices by 147 percent in fiscal year 2024-25.
This is the third time this year that petrol prices have risen as a result of the hearing. Such a decision will put more pressure on the less affluent sectors of society. The proposed petrol price increase is set to take effect on July 1, 2024, according to a national daily.
SNGPL is facing a revenue shortfall of more than Rs. 189 billion. As a result, it intends to raise the average petrol price to Rs. 4,446.89 per metric million MMBtu, an increase of Rs. 2,646.18 per MMBtu.
This proposed price reflects the previous year’s shortfalls in the natural gas sector. Furthermore, SNGPL has proposed a cost of service for regasified liquefied natural gas (RLNG) of Rs. 325.08 per MMBtu for the same period.
The OGRA will hold another session in Peshawar on March 27 and make a decision following that. The textile industry has expressed its opposition to SNGPL’s proposed gas bombs.
The All Pakistan Textile Mills Association (APTMA) and Lahore Chambers will oppose the petition at today’s hearing, demanding an explanation for RLNG diversion and gas costs claimed by the gas distributor.
The textile industry also plans to address issues such as high unaccounted-for petrol (UFG) rates in SNGPL’s network, planned expansions, and associated costs. It also seeks clarification on late payment surcharges, working capital expenses, and other operational costs.
The textile industry also intends to investigate SNGPL’s proposed expenses and ensure transparency and fairness in the pricing process.
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